Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. plz solve a,b,c and d i nedd full answe asap!!

plz solve a,b,c and d i nedd full answe ASAP!! Candice...

60.1K

Verified Solution

Question

Accounting

plz solve a,b,c and d i nedd full answe ASAP!!
image
Candice Corporation has decided to introduce a new product. The product ean be manufactured using either a capitalintensive or labor-intensive method. The manufacturing method will not affect the quality or sales of the product. The estimated manufacturing costs of the two methods are as follows: The company's market research department has recommended an introductory selling price of $30 per unit for the new product. The annual fixed selling and administrative expenses of the new product are $500,000. The variable selling and administrative expenses are $2 per unit regardless of how the new product is manufactured. Required: a. Calculate the break-even point in units if Candice Corporation uses the: 1. capital-intensive manufacturing method. 2. labor-intensive manufacturing method. b. Detemine the unit sales volume at which the net operating income is the same for the two manufacturing methods. c. Assuming sales of 250,000 units, what is the degree of operating leverage if the company uses the: 1. capital-intensive manufacturing method. 2. labor-intensive manufacturing method. d. What is your recommendation to management concerning which manufacturing method should be used

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students